Molded Plastics Market

[188 Pages Report] Plastic processing is a method through which the polymers in the form of granules, pellets, sheets, preforms, fluids, and powders are converted into formed parts, shapes, and components using a rigid frame called matrix or mold. Polyethylene, polypropylene, polyvinyl chloride, polystyrene, polyethylene terephthalate, polycarbonate, and polyamides are commonly used polymers for producing plastic parts. The polymers that are used in plastic molding technologies to create plastic parts and components are considered as molded plastics.

The molded plastics market size is estimated to reach USD 475,866.9 million by 2023 from USD 364,134.6 million in 2016, at a CAGR of 6.2% between 2018 and 2023. The molded plastics market was 240,166.4 kilotons in 2017, and is projected to register a CAGR of 3.8% between 2018 and 2023. Its applications in the packaging industry mainly drive the molded plastics market. Molded plastics are used to produce cans, bottles, containers, and packaging films. These products are widely used as packaging media for food & beverage, pharmaceutical, chemical, and industrial products. Changing packaging patterns, increasing disposable income, improving lifestyles, and increasing per capita expenditure on food & beverage are the key factors that are expected to drive the molded

By application, the packaging segment is projected to be the largest and fastest-growing application of molded plastics.

The packaging segment is expected to be the largest and fastest-growing application, in terms of value, during the forecast period. The growth of the segment is mainly attributed to the increasing demand for alternatives to packaging materials, such as metals and glass. Flexibility in design, chemical and moisture resistance, lightweight, and low cost of molded plastics are expected to drive its consumption in the packaging application. Molded plastics are used to produce cans, containers, bottles, and packaging films that are used in food & beverage, pharmaceutical, and chemical industries. Such attributes are expected to drive the growth of the segment. Construction & infrastructure is expected to be the second-largest application segment in the molded plastics market during the forecast period. The increasing consumption of molded plastics in high-tech agriculture technologies, such as irrigation systems, mulching, and greenhouses, is expected to drive the growth of the segment during the forecast period.

By type, polyethylene molded plastics to lead the market.

Polyethylene is estimated to be the largest segment of the molded plastics market, in terms of value, during the forecast period. It is processed through various molding technologies, such as extrusion, injection molding, blow molding, and rotational molding, to produce plastic parts for applications in the packaging, construction, automotive, and electronics & electrical industries. Polyethylene is preferred in the uses mentioned above, owing to its abrasion resistance, chemical resistance, flexibility, and excellent low-temperature toughness.

APAC is estimated to be the largest and fastest-growing market during the forecast period.

APAC is estimated to be the largest and fastest-growing market for molded plastics, in terms of value, during the forecast period. China dominates the molded plastics market in this region. The market in the region is mainly characterized by the presence of the leading molded plastics producers. APAC is the manufacturing hub for the automotive, chemical, pharmaceutical, food & beverage, and personal care industries. This is expected to fuel the demand for molded plastics. The industrial growth in India, Japan, and the ASEAN countries is also expected to boost the molded plastics market in the region.  The market in North America is mainly characterized by the presence of the leading molded plastics producers. The producers in the region are focusing on the expansion of their production capacities, to leverage the low production costs due to the abundance of raw materials.

Market Dynamics

Driver: Growing high-tech agriculture application to boost the molded plastics market.

Agriculture is another major application of molded plastics. The increasing demand for plastics from this sector is expected to drive the molded plastics market. The increasing use of plastics in this sector has helped farmers to enhance crop production and improve food quality.

The commonly used molded plastics in the agriculture application include PE, PP, PVC, and PET. These plastics are used in greenhouses, tunnels, mulching, reservoirs and irrigation systems, silage, fitting and spray cones, and nets that are used to shade the interior of a greenhouse. Plastic irrigation pipes that are produced from PVC help in the prevention of wastage of water and nutrients. Reservoirs built with plastics help in the retention of rainwater. Greenhouses and mulching help in reducing the use of pesticides by keeping crops within a closed space. Vegetables including watermelon and asparagus are cultivated efficiently by using plastic tunnels.

Restraints: Fluctuation in raw material prices Hampering the Growth of The Molded plastics Market

Crude oil, natural gas, and naphtha are prominent feedstocks used in the production of primary petrochemicals, which are, in turn, used as raw material for the production of different types of molded plastics.

Plastic compounders further process resins and then used by formulators to manufacture plastic parts that are used in the packaging, automotive, and construction industries. Hence, the price changes in crude oil directly affect the prices of molded plastics, due to which the costs get spread across the entire value chain of the molded plastics market. The fluctuating feedstocks prices have a direct impact on the profitability and scalability of molded plastics suppliers, which was evident during the fall of crude oil prices from 2014, until recently.

Opportunities: Bioplastics are the future OF molded plastics.

Molded plastics are organic polymers that are processed in different ways by using various molding technologies. By selecting the specific molding process, raw materials, additives and operating properties, such as formability, elasticity, hardness, rigidity, chemical and heat resistance, can be varied as per the required application. Molded plastics are economical and lighter than their alternative materials, for instance, metals, and are therefore preferred in commercial and industrial applications. They are mostly derived from fossil sources, such as crude oil, natural gas, and naphtha. The environmental impact of the petroleum-based molded plastics on the ecosystem has impelled the development of bio-based plastics.

Bioplastics cover an extensive range of materials. The first-generation bioplastics were derived from traditional renewable and agricultural resources, such as soybeans, corn, and sugar cane. The second-generation sources shifted from food to non-food renewable sources, such as hemp, sawdust, switchgrass, and castor beans, as well as the byproducts of first-generation feedstocks that include peels and husks. The third-generation sources include modified methanobacteria and algae. Research is also underway to develop new resources for bioplastics.

Challenges:  Disposal issues with molded plastics

Molded plastics are used to manufacture products for the applications in packaging, automobile, building & construction, and agriculture industries. These products are preferred in these industries owing to their low weight, durability, high strength-to-weight ratio, resistance to shock, and low toxicity. This, in turn, has fueled the demand for plastic products. However, their present levels of usage have generated huge waste disposal resulting in several environmental problems. Plastic products, when disposed of and released into the environment, release harmful chemicals in the form of pollutants. These pollutants mainly include compounds, such as benzene and dioxins, and heavy metals, such as lead and cadmium. These chemicals and heavy metals release harmful toxins into the environment.

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Scope of the Report

The research report categorizes the Molded Plastics Market to forecast the revenues and analyze the trends in each of the following sub-segments:

Molded plastics market, by type:

• Polyethylene
• Polypropylene
• Polyvinyl Chloride
• Polyethylene Terephthalate
• Polystyrene
• Polyurethane
• Others

Molded plastics market, by Application:

• Packaging
• Automotive & Transportation
• Construction & Infrastructure
• Agriculture
• Pharmaceutical
• Electronics & Electrical
• Others

Molded Plastics Market, by Region:

• APAC
• North America
• Europe
• South America
• Middle East and Africa

Key Market Players

ExxonMobil Corporation (US), LyondellBasell Industries Holdings BV (Netherlands), SABIC (Saudi Arabia), INEOS (Switzerland), DowDuPont (US).

Recent Developments

• In October 2017, ExxonMobil started the commissioning of the polyethylene production facility in Texas, US. This expansion will increase capacity by 65% or 650,000 tons, which will lead to a new production capacity of 2.5 million tons. The company is focusing on the production of high-performance polyethylene through this expansion.
• In September 2017, SABIC established its new PP plant in the Netherlands. It will help in supplying PP resins for the automotive and packaging industries.
• In September 2017, LyondellBasell established a new manufacturing site for PP compounds in China. This site will have the capacity of 20 KTPA.
• In August 2017, Eastman Chemical Company announced the expansion of its copolyester facility in Kuantan, Malaysia. The expansion is expected to be completed in the first quarter of 2018 and will increase capacity by 20%. The overall capacity will be 360,000 tons after the expansion.
• In July 2017, LyondellBasell started commissioning of HDPE plant of capacity 500 tons per annum at Texas (US) through its Hyperzone PE technology. The company chose Texas as the manufacturing location, owing to the proximity to low-cost feedstocks and transportation infrastructure needed to ship the product to end-users, globally.

Critical questions the report answers:

• What are the upcoming trends for the Molded Plastics Market?
• Which segment provides the most opportunity for growth?
• Who are the leading vendors operating in this market?
• What are the opportunities for new market entrants?

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